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Resource 4 . 2 . 2
16 minutes

Dirks v. SEC

Dirks is the leading case on “tippee” liability under rule 10b-5. A “tippee” is a corporate outsider who trades after receiving material nonpublic information from an insider or another tippee.1. According to the majority, when are tippees liable under rule 10b-5?2. Why did the majority exonerate Dirks?

Supreme Court of the United States
463 U.S. 646, 77 L. Ed. 2d 911, 103 S. Ct. 3255, 1983 U.S. LEXIS 102, SCDB 1982-152
No. 82-276
1983-07-01

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